McLaren’s £49million fine for F1 ‘spying’ declared a tax write-off

Formula One team McLaren has been able to claim a £49million fine for ‘spying’ on a rival was tax deductible.

Jenson Button is a member of the McLaren team (Picture: EPA)

The British constructor successfully argued at a tax tribunal that the fine handed down by the FIA, the sport’s governing body, was essentially a business expense.

Officials from HM Revenue and Customs disagreed but a tribunal found in McLaren’s favour.

It ultimately cost the Woking-based team – home to drivers Jenson Button and Lewis Hamilton – £32million for being in possession of a technical document belonging to rivals Ferrari in 2007.

The decision has angered the Tax Justice Network, which campaigns for more openness in the tax system and closing of loopholes.

Director John Christensen said: ‘From a taxpayer point of view it’s extraordinary a company that has been found guilty of cheating can have the fine deducted from their bill so the tax payer loses out as a result of their activities.’ McLaren, which – according to its lastest accounts – made £15.8million in 2010, said it provided ‘high-quality employment and substantial tax revenue’.

It added: ‘As a UK-registered company, McLaren will continue to comply with all relevant legislation.’